PayPal Unveils Payment System Aimed at Digital Goods

EBay's PayPal unit unveiled a new system aimed at making it easier for consumers to pay for small online purchases of digital news articles, video clips or games.

The system, which PayPal disclosed at its second annual conference for software developers in San Francisco, will allow consumers to pay for such digital goods with as few as two clicks, without switching websites or having to re-enter credit-card or bank details. PayPal said it will continue charging sellers of digital goods five cents plus 5% of the transaction price for purchases of less than $12. The new system's debut comes as PayPal seeks to protect its turf in online payments from rivals, including credit-card giant Visa Inc., and amid shifting business strategies by media companies.